Pivot as Share Price Plummets

Snap Inc.’s (SNAP) Snapchat is an app launched in 2011 that historically has been popular with a younger audience. The app is characterized by its rapidly disappearing pictures and messages. For more than 10 years the platform was available only as a mobile app, and the company only had a bare-bones website. That’s about to change.

It seems Snapchat is growing up as its user base ages. The company announced it will launch a web-based option. The move may be part of a new strategy following a rough year for tech and social media companies, which have seen their valuations tumble. Snap’s share price is down about 70% year-to-date.

Competing With Meta’s WhatsApp

When using the web-based platform, users will be able to send messages and make video calls from their computers. The fleeting nature of Snapchat’s content will endure, with messages either disappearing after 24 hours or instantaneously after being viewed.

The desktop version won’t have the full functionality of the mobile app as it will emphasize the messaging feature. Industry observers say its launch will place Snapchat squarely in competition with Meta’s WhatsApp and Discord’s instant messaging social platform.

Limited Access

The web-based version will be offered only to Snapchat Plus subscribers initially, with those living in the US, UK, Canada, Australia, and New Zealand getting early access. The company expects users to cheer the availability of more space to chat as well as the option to call in the same window. It hopes that flexibility concerning choice of device will help drive brand loyalty.

The company aspires to revitalize its slowing revenue growth and better leverage its 332 million daily active users. Having said that, the initial launch will not have ads, which is Snapchat’s primary source of cash flow.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS22071902

The post Snapchat’s Web-Based Launch appeared first on SoFi.